RealNetworks’ Humble Pie

(New York) John Paczkowski, who writes the “Digital Daily” blog at The Wall Street Journal has an interesting piece this morning about Apple and proposed RealNetworks app. According to Paczkowski:

RealNetworks has submitted to Apple a free application that will bring its $15-a-month Rhapsody subscription music service to anyone with an iPhone or iPod.. Apple [is] in a uniquely uncomfortable spot: Accept into the App Store an on-demand streaming music application that will compete [with] iTunes users or reject it and suffer. a nasty public relations nightmare.

The irony is downright amusing. RealNetworks rejected the underlying concept of the iPod back in 2000. That sent Tony Fadell, grandfather of the iPod’s technology, into Steve Jobs’ welcoming arms and the rest is history.

If Apple is smart, it will swallow its pride and approve this, which will eviscerate any PR problem. Meanwhile the roughly 500 people in the country who want to pay for Rhapsody on their iPhones will get it, while just about everyone else will be content with iTunes. Done deal.